How many people over the last few months have received statements for super accounts they had completely forgotten about? As well as being hard to track, quite often they are forgotten to be advised when you move home.
By consolidating your super there are potentially big savings to be had, especially when you have multiple funds. Below shows an example of rolling over three funds, each worth $10,000 into a new superannuation
Currently you would be paying $948.40 over the three funds versus now paying one yearly set of fees of $264 by rolling over into Fund x . This is a saving of $684.40 per annum.
Fees payable |
Fund A |
Fund B |
Fund C |
Fund x |
Amount Invested |
$10,000 | $10,000 | $10,000 | $30,000 |
Contribution Fee |
$0 | $0 | $0 | $0 |
Ongoing Management fee |
0.0% | 0.0% | 2.16% | 0.4% |
Admin Fee |
$88 | $15 | $98 | $0 |
Member Fee |
$0 | $0 | $98.40 | $0 |
Investment Cost |
0.91% or $91 | 1.37% or $137 | 2.05% $205 | 0.48% or $144 |
Total |
$179 | $152 | $617.40 | $264 |
By consolidating your super you also have the added bonus of:
- Saving costs by only paying one set of fees
- Reducing the amount of statements and paperwork to keep track of
- Knowing exactly where your super is invested and invested according to your risk profile assessment
Consolidating your super can be done easily by your financial planner. It is always best to consult a professional however, to make sure that:
- You are invested in the right investment option for your risk profile and age group
- You are comparing apples with apples – some insurances within superannuation funds may offer products / features that others don’t, which most people will not realise until it’s too late
- Fees and charges are comparable (2% might not seem like a lot but as can be seen above – it adds up)
By Income Solutions Financial Planners
*Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.
